Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com

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Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
Kansas City: The Crossroads of Connectivity

           Edgerton, KS • logisticsparkkc.com • 816.888.7872

                                                               05-13
Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
The Kansas City Transportation Advantage

                                                                 Kansas City is...
                                                      #1 RAIL by tonnage in U.S.
                                                        #3 TRUCK center in U.S.

 Kansas City has long been a hub for transportation. Its growing economy, geographic location,
 business-friendly environment, low tax rate and developed and evolving infrastructure contribute
 to this well-deserved reputation. It all culminates with Kansas City being an attractive location for
 transportation and logistics operations.

 • The largest rail center in the United States by tonnage
 • More Foreign Trade Zone (FTZ) space than any other U.S. city (more than 10,000 acres)
 • Located at the crossroads of four of the nation’s major interstate highways (I-35, I-70, I-29 and I-49)
 • The heart of a rail corridor spanning coast to coast across the United States and extending from
   Canada to Mexico (NAFTA Railway)
 • The Kansas City International Airport, which moves more air cargo each year than any air center in
   a six-state region
 • Located on the nation’s largest navigable inland waterway (Missouri / Mississippi River system)

1 • Logistics Park Kansas City                                                            logisticsparkkc.com
Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
At the Intersection of Opportunity
Whether by highway, water, rail or air, Kansas City offers excellent transportation advantages. Because of
its central location and outstanding multimodal infrastructure, it is easier and more cost-efficient to ship into
and out of Kansas City, making Logistics Park Kansas City (LPKC) an ideal location for production facilities,
warehouses and distribution centers. When you are located in the nation’s heartland, you have an immediate
cost advantage when shipping raw materials and finished goods.

Proximity to Major Markets
                                            S
                                         ILE
                                      00M
                                    12
                          90

                                                   ES
                Seattle
                                                 IL
                                                M
                                                          S
                                                       ILE
                                            0
                                          75

                                                      M                   35                                   Boston
                                                  0
                                                50

                      80
San                                                                                                        New York
                                                                     29             Chicago
Francisco
                                                      70
                                     Denver                               Kansas
                                                                     35    City
                                                  KANSAS                       44
                    15

                               40                                                              40

       San Diego
                                     25               Dallas
                                                                          49
                                                                    45                        75
                                                                Houston
                                                           35

2 • Logistics Park Kansas City                                                                      logisticsparkkc.com
Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
Multimodal Transportation = Flexibility
Kansas City is a prime player in the emerging international trade corridor. Its access to the West Coast and East
Coast via connectivity to the U.S. intermodal network provides for the efficient flow of goods. Kansas City’s
strategic location at the crossroads of highway and rail traffic enhances its position in the global marketplace.

Air
Kansas City is one of the lowest-cost air travel markets in the country. It is served by 10 major commercial
airlines and their connection partners, with approximately 200 daily departures and nonstop service to more
than 50 destinations.

Highway
No other city in the United States has more freeway-lane miles per capita than Kansas City. It is one of eight
cities in the United States in which four interstates intersect. Kansas City’s highway infrastructure includes:
• Four interstates (I-70, I-49, I-35 and I-29)
• Four interstate linkages (I-435, I-635, I-470 and I-670)
• Nine U.S. highways

Rail
Kansas City ranks first in U.S. freight volume by tonnage and is generally regarded as the second largest
rail center. Five Class I rail carriers, three regional lines and a local switching carrier (Kansas City Terminal)
serve the area.

     From Kansas City, you can reach 80 percent of the United States in less than
     two days; 100 percent within three days.

3 • Logistics Park Kansas City                                                                 logisticsparkkc.com
Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
Internet Fulfillment
Kansas City is well-positioned for internet fulfillment (package and parcel) due to its proximity to the
nation’s leading less-than-truckload (LTL) and parcel shippers’ terminals.

                  ESTIMATED FREIGHT DELIVERY TIMES

                                                                                           3
                                 3
                  4                     2
                                                       1
                                                      LPKC

                                                                           2

                                                                                3
                  Zone 1 – Overnight (12 hours)              Zone 3 – 2nd Morning (24 hours)
                  Zone 2 – Next Day (16 hours)               Zone 4 – 2nd Day (30 hours)

                                          Major Delivery Zone Cities
              Zone 1                                         Zone 3
              Chicago                Des Moines              Miami             Billings, MT
              Memphis                Minneapolis /           Boston            Montreal, PQ
              Kansas City            St. Paul                Phoenix           Toronto, ON
              Omaha                  Dallas / Ft. Worth
              Denver                 Indianapolis
              Zone 2                                         Zone 4
              New Orleans            Houston                 Los Angeles       San Francisco
              Atlanta                Cincinnati              Seattle           Vancouver, BC
              New York               Washington D.C.         Portland
              Salt Lake City         Baltimore

4 • Logistics Park Kansas City                                                                logisticsparkkc.com
Kansas City: The Crossroads of Connectivity - Edgerton, KS logisticsparkkc.com
Labor Supply
The state of Kansas and the Kansas City region offer a highly motivated and well-educated workforce with a
strong work ethic. The community and region surrounding LPKC offer an ample workforce supply projected
for both the long-term and short-term.

Skilled Workforce
The education system in Kansas contributes to its successful industry. Both the public high school
graduation rate and the percentage of the population with a bachelor’s degree are above the national
average. The progressive business climate, coupled with a top-notch educational system, has resulted
in an adept, well-skilled workforce.

      The U.S. Census Bureau states that the workforce in the Kansas City region
      contributes 40 percent more value per hour than the national average.

Supply Chain Trained
Kansas City is committed to a supply chain education initiative that brings those involved in the transportation
and logistics industry together with area educational institutions to identify training needs. Through high
schools, universities and colleges in the region, there are several programs that offer training to educate the
workforce with the necessary skills for current and upcoming jobs in the transportation and logistics industry.

Supply Chain Support Companies
From air cargo to warehousing, the Kansas City area is home to many different types of companies that
directly or indirectly support international trade efforts. Because of its position as a top-tier logistics hub in
the United States, Kansas City has an array of businesses linked to the supply chain, including companies
that provide loading and handling, packaging, trucking and management of the shipping process.

5 • Logistics Park Kansas City                                                                   logisticsparkkc.com
In Kansas City, the transportation industry currently employs about 53,000
         workers or 4.1 percent of the region’s total workforce.

State and Local Government Support
With a population of just over 2.8 million, Kansas has a proactive legislative and regulatory environment and
offers major advantages in costs, taxes, skilled workforce and major transportation assets. The state has
built a diverse industry base that includes bioscience, animal health, energy technology, aviation, advanced
manufacturing and agriculture. Companies benefit from the state’s central location and access to major
transportation corridors and recruit from some of the nation’s best universities and technical schools.

6 • Logistics Park Kansas City                                                              logisticsparkkc.com
Kansas is Pro-Business
• As a right-to-work state, compulsory union membership is prohibited

• Being e-Commerce sales tax safe is attractive for internet fulfillment centers, and unique in the Midwest
  and to other BNSF Logistics Parks

• All merchants’ and manufacturers’ inventories are exempt from property taxes

• Workers compensation premium rates are low — 7th lowest in the nation, which can significantly
  reduce costs for employers

• Commercial and industrial machinery and equipment is exempt from state and local property tax

• Income tax exemption on certain non-wage income for SubChapter S Corp, LLCs, LLPs,
  Sole Proprietorships and Partnerships

7 • Logistics Park Kansas City                                                            logisticsparkkc.com
You will be in good company. Join other intelligent companies who have wisely chosen the
Kansas City region as a distribution center location, including:

 • American Eagle Outfitters       • Hill’s Pet Nutrition, Inc.   • Pure Fishing

 • Case New Holland                • Home Depot                   • Sony Electronics

 • Coca-Cola Bottling              • Honeywell Aerospace          • Target
                                     Electronics System
 • Coleman Company                                                • Toys ‘R Us
                                   • J.C. Penney Catalog
 • Del Monte                         Logistic Center              • Tyson Foods, Inc.

 • Federal Express                 • Kohl’s                       • U.S. Toy

 • Ford Motor Company              • Musician’s Friend            • Wainwright Industries

 • Garmin International            • O’Reilly Automotive          • Walmart Stores, Inc.

 • Goodyear Tire & Rubber Co.      • Pacific Sunwear              • Zumies

 • Grainger                        • Pepsi-Cola

 • Hallmark Cards, Inc.            • Prescription Solutions

            “Kansas City was the optimal location to get products shipped anywhere
             in the United States in three days or less. No other city could offer that
             kind of guarantee without expedited shipping costs.”
             Jeff Kisling
             Vice President, Logistics & Services
             Pure Fishing

8 • Logistics Park Kansas City                                                     logisticsparkkc.com
Kansas City by the Numbers: Ratings & Rankings for 2012
Among “America’s 50 Best Cities”
Kansas City ranks No. 15 among “America’s 50 Best Cities” thanks to its “unique blend of technology,
arts and history.” Bloomberg Businessweek evaluated 100 of America’s largest cities based on leisure
attributes, educational attributes, economic factors and more to generate the top 50 cities in America.
Kansas City out-ranked cities such as Los Angeles, Chicago and Dallas. Bloomberg Businessweek,
September 2012.

Nation’s Eighth-Strongest Metro
Kansas City ranks as the nation’s eighth-strongest metropolitan area in terms of its economy according to
a 20-year study done by Policom Corporation. Other cities that made the list included Washington D.C.,
Des Moines, Iowa and Seattle. Kansas City Business Journal, May 2012.

No. 16 for Best Cities for Jobs in 2012
Up 41 spots from its position at No. 57 in 2011, Kansas City claimed the No. 16 spot for the “Best Cities
for Jobs in 2012.” With its increasing metropolis, Kansas City is continuing its economic growth and
development and bringing in more jobs than ever. New Geography, May 2012.

No. 3 on Forbes List of “10 Best Cities to Buy a Home”
Kansas City boasts a modest median list price and a large pool of options that make this city rank No. 3 on
Forbes list of “10 Best Cities to Buy a Home.” Forbes, April 2012.

9 • Logistics Park Kansas City                                                             logisticsparkkc.com
Low Cost of Living                                                ACCRA Cost-of-Living Index, 2012

     The Kansas City region’s cost-of-living     Indianapolis                                 94.4
     measures below the United States
                                                     Atlanta                                    96
     average, as reported by the ACCRA
     cost-of-living index.                            Dallas                                   98.8

                                                 Kansas City                                   99.7

                                               United States                                    100

                                                     Denver                                     105.0

                                               Minneapolis /                                    107.7
                                                    St. Paul
                                                    Chicago                                                116.2

                                                Los Angeles                                                        131.7

                                                     Boston                                                              140.6

                                                                0      25       50       75          100           125           150

                                               Source: The Council for Community and Economic Research (C2ER)

     Affordable Housing                        2012 Median Sales Price, Existing Single-Family Homes
     Kansas City consistently rates as one               Location                Median Sales Price
     of the most affordable housing                 Kansas City Metro                  $131,300
     markets among metropolitan areas
     with populations exceeding one million.           United States                   $163,500

                                               Source: National Association of Realtors

10 • Logistics Park Kansas City                                                                       logisticsparkkc.com
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